U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed lower for a fourth straight day on Wednesday and posted their weakest August performance in seven years, as concerns persisted over the Federal Reserve’s aggressive interest rate hikes.

Declines in technology stocks, particularly chip stocks, put further pressure on the market after Seagate and Hewlett-Packard both released weak earnings results.

The three major stock indexes posted their biggest August percentage declines since 2015.

After hitting a new four-month high in mid-August, the S&P 500 has tumbled in recent weeks, reaching a monthly decline of more than 8% by Wednesday’s close, with the Dow down 4.06%, the S&P 500 down 4.24% and the Nasdaq down 4.64% for the month.

Adding to investors’ nervousness is the fact that the stock market will enter the traditional weakness of September.

Data last night showed that ADP civilian jobs rose by 132,000 in August, below the 288,000 forecast by economists polled by Reuters.

ADP suspended its report in June and July due to a revision of its data methodology, after the company had been having a poor record in forecasting civilian jobs in the Labor Department’s Bureau of Labor Statistics employment report.

The Labor Department’s jobs data will be released Friday and is expected to show nonfarm payrolls added 300,000 jobs last month after posting a gain of 528,000 in July.

If this report remains strong, it could further solidify expectations that the Fed will continue to raise rates by an outsized amount after three consecutive 75 basis point rate hikes.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 31661-line today. If the Dow runs steadily above the 31661-line, it will pay attention to the suppression strength of the 32083 and 32455 positions. If the Dow runs steadily below the 31661-line, it will pay attention to the support strength of the 31291 and 31000 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks closed down collectively at midday, with the Hang Seng Index (HSI) down 1.52%, the Hang Seng China Enterprises Index (HSCEI) down 1.34% and the Hang Seng TECH Index (HSTECH) down 1.15%.

The half-day net inflow of southbound capital was HK$3.482 billion, and the market turnover was HK$57.8 billion.

On the market, most of the large technology stocks fell, Meituan (3690.HK) fell 4%, Kuaishou Technology (1024.HK) fell 2%, Alibaba Group Holding Limited (9988.HK) fell 1%, and NetEase, Inc. (9999.HK) followed.

The Baltic Freight Index plunged nearly 50% in August, shipping stocks fell in general, and Orient Overseas (International) Limited (0316.HK) fell 6%.

Auto stocks continued yesterday’s decline, BYD Company Limited (1211.HK) fell more than 4.8%.

Beer stocks, gaming stocks, sporting goods stocks, restaurant stocks and many other stocks sank.

In addition, the regular meeting of the State Council to support rigid and improved housing demand, advocating “one city, one policy”, domestic housing stocks rose collectively, China Jinmao Holdings Group Limited (0817.HK) rose 8%.

Most companies in the second quarter earnings increased significantly, coal stocks rose generally.

Building materials cement stocks, heavy infrastructure stocks, education stocks, and Chinese medicine stocks were collectively strong.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, then focus on the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, then pay attention to the support strength of the 18606 and 17535 positions.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 13544-line today. If the A50 runs stably below the 13544-line, pay attention to the support strength of the two positions of 13157 and 12945. If the A50 runs above the 13544-line, it will open up further upward space. At that time, pay attention to the two positions of 13887 and 14371.

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